Macau Poised for Higher Gross Gaming Revenue Run-Rate in May – CBRE Group
MACAU, SAR (May 2, 2023) — Macau is expected to maintain a higher gross gaming revenue run-rate throughout May and the rest of the year, driven by growth in domestic tourism in China and the robust performance in April, the Macau News Agency reported a CBRE Equity Research team’s recent update forecasts.
The city’s casino revenue increased by 449.9 per cent year-on-year to MOP14.72 billion (US$1.83 billion) in April, according to fresh data released by the Gaming Inspection and Coordination Bureau (DICJ) on Monday.
The April figure represents a 15.6 per cent increase from the previous month and is the best monthly performance since January 2020 just before pandemic restrictions were imposed.
In an industry update, CBRE analysts John DeCree and Max Marsh pointed out that the city’s accelerating gaming recovery had benefited from a holiday that combined the Ching Ming Festival and Easter – a period that took place in the run-up to the Labour Day holiday between 29 April and 3 May.
April’s gross gaming revenue suggested an annual run rate of over US$22 billion, and CBRE expects the figure to grow in May, and even throughout the remainder of the year.
May is “starting off strong” with upbeat commentary and data about the Labour Day holiday, the analysts said, expecting hotel occupancy rates for the holiday period to hover around 90 per cent amid increased ferry services in response to additional visitation.
Moreover, online travel agents reported a significant jump in domestic travel demand nationwide for the May Day holiday, the report said.
“We continue to see incremental data points that domestic tourism in China is beginning to accelerate, which should mean more room for Macau to run,” the CBRE analysts stressed.
The report also brought up several other factors behind expected growth in gross gaming revenue, including a continued relaxation of Covid restrictions and new tourism offerings in the SAR.
Macau recently lifted a mandatory mask-wearing requirement for public transport passengers, and the months-long immigration restriction on the number of daily trips that border crossers were allowed to make between Macau and Zhuhai.
According to the report, the fresh offerings include a section of the second-phase project of Melco Resorts and Entertainment’s Studio City property.
Others include the Palazzo Versace Macau luxury hotel at SJM Holdings’ Grand Lisboa Palace resort, the Galaxy International Convention Center, as well as Raffles at Galaxy Macau and Andaz Macau – two new hotel buildings under Galaxy Entertainment Group slated to open in the near future.
SOURCE: Macau News Agency.Tags: May 2023, gross gaming revenue (GGR), Macau SAR